PROCEDURES APPLICABLE TO ASSUMPTION OF INSURED MORTGAGES.

SEC. 1063. PROCEDURES APPLICABLE TO ASSUMPTION OF INSURED MORTGAGES. (a) Credit Reviews.— Section 203(r)(2) of the National Housing Act (12 U.S.C. 1709(r)(2)) is amended by striking “date on which the mortgage is endorsed for insurance” each place it appears and inserting “date on which the mortgage is executed”. (b) Effective Date.— Section 407(a)(2) of the Housing and Community Development Act of 1987 is amended to read as follows: 102 STAT. 3275 “(2) Effective date.— The amendment made by paragraph (1) shall apply to each mortgage originated pursuant to an application for commitment for insurance signed by the applicant on or after December 1, 1986.”.